Automotive Steer-by-Wire System Market

Increased advantages of the SBW system is driving the market growth

The advantages of the SBW system are one of the main factors boosting the market CAGR for automotive steer-by-wire (SbW) systems. An electronic system with improved functional precision is the SBW system. The primary benefit of SBW systems for car equipping is that they help lighten the vehicle, which boosts fuel efficiency. 

Due to fewer mechanical linkages and components, the SBW system improves vehicle safety by lessening the impact of collisions. The modular architecture of SBW systems results from continuing developments, which will speed up production. Adding an active steering system to SBW may optimize vehicle handling and enhance the active lane control system of the vehicle. During the projection period, these advantages will propel the market for automobile steer-by-wire (SbW) systems.

The increasing use of advanced steering systems in automobiles is one of the major market trends for automotive steer-by-wire systems that are driving market expansion. The demonstration at auto shows and consumer electronics exhibitions demonstrate how automakers and tier-1 suppliers are collaborating to commercialize autonomous technologies. One of the well-known startups developing SBW systems is Nexteer Automotive Co. Nexteer Automotive Co. unveiled an SBW with a detachable steering column in 2021. The stable steering column will give the driver more room to perform other tasks automatically while driving.

For instance, the extra space can be used for activities like reading books, eating, and other things when the driver's attention is unnecessary. These advancements will favorably affect the market expansion for automotive steer-by-wire systems during the anticipated period.

Steer-by-wire systems offer improved accuracy, dependability, and safety by replacing conventional mechanical steering systems with electronic controls. Steer-by-wire systems are advantageous for electric vehicles because they do away with the need for bulky, complicated mechanical parts like the steering column, rack and pinion, and hydraulic pump. This aids in lightening the load on the car, increasing efficiency and range.

Advanced steering systems that can connect with the vehicle's sensors and control systems are also necessary for autonomous vehicles in order to ensure accurate and safe navigation. This is made possible via steer-by-wire technology, which provides precise and immediate control of the vehicle's steering whether or not the driver is present. As a result, the market for automotive steer-by-wire systems is expected to expand dramatically, spurred by rising interest in electric and driverless vehicles. Thus, driving the automotive steer-by-wire system market revenue.

The Global Automotive Steer-by-Wire System Market Industry is projected to experience robust growth in the coming years. With a market size expected to reach 3.16 USD Billion in 2024 and 5.12 USD Billion by 2035, the industry is on a promising trajectory. The compound annual growth rate (CAGR) of 4.49% from 2025 to 2035 indicates a sustained increase in demand for steer-by-wire systems. This growth is driven by various factors, including technological advancements, regulatory support, and changing consumer preferences. As the industry evolves, it is likely to attract further investments and innovations, shaping the future of automotive steering solutions.

The Global Automotive Steer-by-Wire System Market Industry is experiencing rapid technological advancements that enhance vehicle performance and safety. Innovations in electronic control systems and sensor technologies are pivotal in steering systems, allowing for improved precision and responsiveness. For instance, steer-by-wire systems eliminate mechanical linkages, reducing weight and enabling more flexible vehicle designs. This shift is expected to contribute to the market's growth, with projections indicating a market size of 3.16 USD Billion in 2024. As manufacturers increasingly adopt these technologies, the industry is likely to witness a surge in demand for advanced steering solutions.

The Global Automotive Steer-by-Wire System Market Industry is witnessing significant expansion and investment from various stakeholders. As automotive manufacturers and technology companies recognize the potential of steer-by-wire systems, they are allocating resources to research and development. This trend is evident in the increasing number of partnerships and collaborations aimed at advancing steering technologies. The anticipated growth trajectory, with a market size of 3.16 USD Billion in 2024 and a projected 5.12 USD Billion by 2035, underscores the industry's attractiveness to investors. Such investments are likely to accelerate innovation and enhance the competitive landscape.

The Global Automotive Steer-by-Wire System Market Industry is benefitting from increasing regulatory support for electric vehicles (EVs). Governments worldwide are implementing stringent emissions regulations, which encourage the adoption of EVs equipped with steer-by-wire systems. These systems are particularly advantageous in electric vehicles, as they provide enhanced control and efficiency. As a result, the market is projected to reach 5.12 USD Billion by 2035, reflecting a growing trend towards sustainable transportation. This regulatory environment fosters innovation and investment in steer-by-wire technologies, positioning the industry for substantial growth in the coming years.

The Global Automotive Steer-by-Wire System Market Industry is significantly influenced by consumer demand for enhanced driving experiences. Modern drivers increasingly seek vehicles that offer superior handling, comfort, and customization options. Steer-by-wire systems provide the flexibility to adjust steering response and feel, catering to diverse consumer preferences. This shift in consumer expectations is driving automakers to integrate advanced steering technologies into their vehicles. As the market evolves, it is anticipated that the CAGR of 4.49% from 2025 to 2035 will reflect the growing importance of personalized driving experiences in the automotive sector.

The Global Automotive Steer-by-Wire System Market Industry is poised for growth due to the integration of steer-by-wire systems with autonomous driving technologies. As the automotive industry moves towards automation, steer-by-wire systems play a crucial role in enabling precise control and communication between the vehicle and its environment. These systems facilitate the implementation of advanced driver-assistance systems (ADAS), enhancing safety and efficiency. The increasing investment in autonomous vehicle development is likely to propel the market forward, as manufacturers recognize the necessity of advanced steering solutions to support autonomous functionalities.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American automotive steer-by-wire system market area will dominate this market. The presence of well-known automakers and the development of the automobile industry's technology define this region. The market for SBW systems in this region is propelled by the desire for cutting-edge safety features and the rising popularity of electric and driverless vehicles. 

Additionally, the region's demand for steer-by-wire systems is projected to increase due to increased per capita income, acceptance of autonomous vehicle technologies, and the presence of technology suppliers across North America.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Automotive Steer-By-Wire System Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe automotive steer-by-wire system market accounts for the second-largest market share because it contains major auto-consuming nations including Germany, the UK, Italy, Spain, and Russia. Top automakers in Europe are continuously raising public knowledge of new technologies and their accessibility at lower costs, which is predicted to raise demand for new automotive technologies and parts like steer-by-wire systems. Further, the German automotive steer-by-wire system market held the largest market share, and the UK automotive steer-by-wire system market was the fastest growing market in the European region

The Asia-Pacific Automotive steer-by-wire system Market is expected to grow at the fastest CAGR from 2023 to 2032 due to a rise in the region's per capita income, increased usage of modern vehicle solutions, and both. Major automakers are well-represented in Asia-Pacific, with a sizable amount of car production. The demand for cars is driven by the region's expanding middle class, rising disposable income, and quick urbanization. As a result, SW systems have substantial market potential in this area.

Moreover, China’s automotive steer-by-wire system market held the largest market share, and the Indian automotive steer-by-wire system market was the fastest growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the automotive steer-by-wire system market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, automotive steer-by-wire system industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the automotive steer-by-wire system industry to benefit clients and increase the market sector. In recent years, the automotive steer-by-wire system industry has offered some of the most significant advantages to market. 

Major players in the automotive steer-by-wire system market attempting to increase market demand by investing in research and development operations include Nissan Motor Company Ltd (Japan), ZF Friedrichshafen AG (Germany), JTEKT Corporation (Japan), and Thyssenkrupp AG (Germany), Paravan GmbH (Germany), Nexteer Automotive (US), Danfoss Power Solutions, Inc. (US), SKF (Sweden), LORD Corporation (US), and Eaton Corporation (Republic of Ireland).

Manufacturing automotive parts is the business of Nexteer Automotive Group Ltd. The business creates, produces, and provides steering and driveline systems and components to the vehicle manufacturing sector. Its product line comprises intermediate shafts, steering columns, advanced driver assistance systems, hydraulic power steering, and electric power steering. 

The driveline system from Nexteer consists of halfshafts for both the front and back wheels as well as constant velocity joints for the propeller shafts. Steer-by-wire, quiet wheel steering, magnetic torque overlay, and high availability electric power steering are among the advanced driver-assistance systems and automated driving technologies that the company also provides for OEMs.

A manufacturer of industrial equipment is Danfoss A/S. It develops, produces, and markets a variety of goods and services for off-highway machinery, motor control, refrigeration, heating, and air conditioning applications. Products offered by Danfoss include radiator and room thermostats, electronic controls, differential pressure and flow controllers, condensing units, pumps, steering, software, filter driers, sight glasses, appliance controls, burner components, switches, sensors and transmitters. They also include smart heating, stations and domestic hot water.